Fundstrat co-founder Tom Lee warned that even with strong support from Wall Street, Bitcoin (BTC) could still face a major crash. According to a report by Coin Bureau, Lee said that cryptocurrencies could fall by up to 50%, highlighting the risks that investors should be aware of.
⚡️Tom Lee: Bitcoin is immune to a 50% crash
He warned that even with support from Wall Street, the Bitcoin dollar could face a significant decline, similar to the stock market. pic.twitter.com/xOgzIb6YY0
— Coin Bureau (@coinbureau) October 24, 2025
Institutional support does not eliminate risk
Lee noted that institutional investors, including major banks and funds, are increasing their involvement in Bitcoin. However, he stressed that this support does not make digital assets immune to market fluctuations.
“Even with Wall Street in the game, Bitcoin could still plummet if market conditions deteriorate.” Mr. Lee said. He reminded investors that all assets, no matter how popular or supported, can experience sudden declines.
Tom Lee's warning against Bitcoin comes at a time when many see institutional participation as a safety net. Mr Lee argued that relying solely on this could create a false sense of security.
Lessons learned from market history
Lee explained his cautiousness by pointing to historical trends in both the stock market and the cryptocurrency market. He said the market has natural cycles of growth and adjustment.
“In the past, even strong assets have lost half their value during corrections.” he said. Lee suggested that Bitcoin could behave similarly as it still reacts to market sentiment and economic pressures.
He also said that rapid gains often lead to equally rapid losses if investors do not plan for risk. These lessons from history are important for anyone investing in cryptocurrencies today.
How investors can protect themselves
Lee advised Bitcoin holders to prepare for a potential decline. He encouraged investors to diversify their portfolios rather than putting all their money into a single asset.
He also suggested developing a clear strategy to manage risk. For example, if the market declines, you can limit your losses by deciding in advance how much to sell at.
Additionally, Lee recommended staying informed of economic indicators and market trends. These signals can help investors predict the possibility of a crash and act quickly.
“It's better to be proactive and have a plan than to react after a big loss.” he said.
Bitcoin volatility warning
Tom Lee's warning about Bitcoin highlights an important truth: While Bitcoin's price can rise rapidly, it can also fall just as quickly. Institutional involvement increases credibility but does not prevent market correction.
Investors should always exercise caution and avoid being overconfident. Using risk management tools, diversifying your holdings, and staying informed are important steps to safely navigate the cryptocurrency market.
Even though Bitcoin has gained popularity and support from Wall Street, its volatility means planning and prudence are still important. Lee's advice is a reminder that the crypto market rewards careful strategy, not mere optimism.
